For the 2014 fiscal third quarter, Energy XXI reported adjusted earnings before interest and other, taxes, depreciation, depletion and amortization (adjusted EBITDA) of $178.8 million. Net income available for common stockholders for the quarter was $4.4 million, or $0.06 per diluted share, on revenues of $285.2 million. Excluding one-time charges associated with acquisitions and divestitures, net income available to common stockholders was $13.5 million, or $0.19 per diluted share.

Production for the 2014 fiscal third quarter averaged 42,300 barrels of oil equivalent per day (BOE/d) net, 28,400 barrels per day (Bbl/d) or 67 percent of which was oil. Current production approximates 41,000 BOE/d, which reflects the April 1, 2014 sale of non-operated properties that had been producing approximately 2,000 BOE/d.

"As expected, our fiscal third quarter was a transitional period with limited drilling activity and higher production shut-ins due to rig moves," Energy XXI Chairman and Chief Executive Officer John Schiller said. "The transition is almost complete, and we will be doubling our development drilling activity with the addition of two operated rigs, which should position the company for organic growth in our new fiscal year."

Operations Update

At West Delta 73 (100% WI/ 83% NRI), the El Diente well was completed and brought online in February. El Diente was drilled to 10,462 feet measured depth (MD)/ 8,080 feet total vertical depth (TVD), including a 1,190-foot lateral into the F-35 sand. El Diente came online at 500 Bbl/d of oil and 188 thousand cubic feet per day (Mcf/d) of natural gas, with flowing tubing pressure of 460 psi. Upon completion of El Diente, the rig was moved to the West Delta 73 "B" platform, where it is preparing to drill the Scully horizontal oil well to 10,500 feet MD/ 8,650 feet TVD, including a planned 1,000-foot lateral targeting the F-35 sand. A newly installed second rig at West Delta 73 is preparing to drill the Columbo horizontal oil well to 10,585 feet MD/ 8,065 feet TVD, including a 1,000-foot lateral into the F-35 sand.

At West Delta 30 (100% WI/ 87% NRI), the Black Widow well has been drilled, completed and currently is under test and producing 400 BOE/d. Black Widow was drilled to 3,440 feet MD/ 2,797 feet TVD and encountered 100 feet of pay. Black Widow is the first of a multi-well development program at West Delta 30, to be followed by Banshee, which is being drilled to 3,675 feet MD/ 2,785 feet TVD. The first horizontal well at West Delta 30, Crusader, is expected to be drilled after Banshee, to 5,975 feet MD/ 4,300 feet TVD, including a 700-foot lateral.

"The West Delta 30 development program represents the first drilling in this giant oil field in nine years, targeting overlooked pay sands as shallow as 2,600 feet," Executive Vice President of Operations Ben Marchive said. "Our field study has yielded nearly 60 potential drilling locations, including 45 potential horizontal wells."

In the Main Pass 61 field (100% WI/ 78% NRI), the Don Carlos well was drilled to 10,450 feet MD/ 8,161 feet TVD, and was brought online in early January with oil production of 1,250 Bbl/d from dual completions into the BA-4B and BA-4AA sands. Punch, an oil development well spud in early April following rig maintenance, is being drilled to 9,900 feet MD/ 8,450 feet TVD, also targeting the BA-4AA oil sands.

Acquisitions and Divestitures

In mid-March, Energy XXI and EPL Oil & Gas, Inc. announced the signing of a definitive merger agreement pursuant to which Energy XXI will acquire all of EPL's outstanding shares for total consideration of $2.3 billion, including the assumption of debt. As a result of the merger, Energy XXI will become the largest public independent producer on the Gulf of Mexico shelf.

Energy XXI and EPL have established a record date of April 21, 2014 and a meeting date of May 30, 2014 for the special meetings of their respective shareholders. The merger is expected to be completed on or about June 3, 2014.

"We are excited to be nearing the completion of this transformative acquisition," Schiller said. "The teams are working together to high-grade oil development projects and looking at ways to capitalize on additional synergies beyond the approximate $50 million of potential annual savings already identified."

On April 1, 2014, Energy XXI sold its non-operated interests in Eugene Island 330 and South Marsh Island 128 to M21K, LLC, a joint venture in which the company owns a 20 percent interest, for $123 million in cash, approximately $100 million net to Energy XXI. The two assets included recent production of approximately 2,000 BOE/d and proved reserves of 4.7 million BOE.

"Divestiture of these non-operated assets is consistent with our focus on putting capital to work in fields where we operate and can drive growth in reserves, production and value," Schiller said.

Capital Expenditures

During the 2014 fiscal third quarter, capital expenditures totaled $186.6 million, with $41.8 million in exploration and $144.8 million in development and other costs. Acquisitions added another $22.5 million of expenditures for the fiscal third quarter.

Conference Call Tomorrow, May 1, at 9 a.m. CDT, 3 p.m. London Time

Energy XXI will host its fiscal third-quarter conference call tomorrow, May 1, at 9 a.m. CDT (3 p.m. London time). The dial-in numbers are 1 (631) 813-4724 (U.S.) and (0) 800 028 8438 (U.K.), and the confirmation code is 31378048. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.EnergyXXI.com.

ENERGY XXI (BERMUDA) LIMITED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In Thousands, except per share information)

(Unaudited)

As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measure: Adjusted EBITDA. The company uses this non-GAAP measure as a key metric for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt.

Three Months Ended

Nine Months Ended

March 31,

March 31,

2014

2013

2014

2013

Net Income as Reported

$7,292

$40,436

$60,926

$100,028

Interest expense-net

41,833

27,159

108,724

79,914

Depreciation, depletion and amortization

99,899

88,727

303,628

279,378

Income tax expense

14,565

29,688

50,559

65,418

EBITDA

163,589

186,010

523,837

524,738

Adjustments to EBITDA

Accretion of asset retirement obligation

6,066

7,649

20,817

23,057

Acquisition and divestiture expenses

9,100

--

9,100

--

Adjusted EBITDA

$178,755

$193,659

$553,754

$547,795

Weighted Average Number of Common Shares Outstanding

Basic

70,437

79,365

73,415

79,280

Diluted

70,502

87,516

73,493

87,471

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED BALANCE SHEETS

(In Thousands, except share information)

March 31,

June 30,

2014

2013

(Unaudited)

Current Assets

Cash and cash equivalents

$303,702

$—

Restricted cash

325

—

Accounts receivable

Oil and natural gas sales

129,604

132,521

Joint interest billings

5,210

9,505

Insurance and other

8,494

6,745

Prepaid expenses and other current assets

24,204

50,738

Derivative financial instruments

3,393

38,389

Total Current Assets

474,932

237,898

Property and Equipment

Oil and natural gas properties - full cost method of accounting, including $263.2 million and $422.6 million of unevaluated properties not being amortized at March 31, 2014 and June 30, 2013, respectively

3,625,788

3,289,505

Other property and equipment

16,888

17,003

Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment

Proceeds from the issuance of common and preferred stock, net of offering costs

439

499

3,844

5,259

Discount on convertible debt allocated to additional paid-in capital

—

63,432

—

Repurchase of company common stock

(30,772)

—

(184,263)

—

Dividends to shareholders – common

(8,440)

(5,556)

(26,238)

(16,659)

Dividends to shareholders – preferred

(2,872)

(2,873)

(8,617)

(8,623)

Proceeds from long-term debt

275,074

532,990

2,039,759

1,142,439

Payments on long-term debt

(263,500)

(447,653)

(1,391,379)

(928,914)

Debt issuance costs

(276)

—

(19,199)

—

Other

3

—

—

1,452

Net Cash Provided by (Used in) Financing Activities

(30,344)

77,407

477,339

194,954

Net Increase (Decrease) in Cash and Cash Equivalents

(54,126)

(10,666)

303,702

(86,858)

Cash and Cash Equivalents, beginning of period

357,828

40,895

—

117,087

Cash and Cash Equivalents, end of period

$303,702

$30,229

$303,702

$30,229

ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED OPERATIONAL INFORMATION (Unaudited)

Quarter Ended

Operating Highlights

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2013

June 30, 2013

Mar. 31, 2013

(In Thousands, Except per Unit Amounts)

Operating revenues

Crude oil sales

$254,641

$263,626

$290,965

$270,623

$273,280

Natural gas sales

37,562

31,138

32,584

38,630

27,070

Hedge gain (loss)

(7,020)

2,052

1,043

5,072

3,424

Total revenues

285,183

296,816

324,592

314,325

303,774

Percent of operating revenues from crude oil

Prior to hedge gain

87%

89%

90%

88%

91%

Including hedge gain

88%

88%

89%

87%

90%

Operating expenses

Lease operating expense

Insurance expense

6,410

7,920

8,496

7,462

7,473

Workover and maintenance

17,797

19,690

14,586

15,622

19,166

Direct lease operating expense

59,417

66,179

62,681

59,371

59,666

Total lease operating expense

83,624

93,789

85,763

82,455

86,305

Production taxes

1,090

1,189

1,398

1,481

1,352

Gathering and transportation

5,700

5,978

5,345

5,668

4,411

DD&A

99,899

103,513

100,216

96,846

88,727

General and administrative

24,208

17,698

23,672

12,299

16,092

Other – net

5,861

13,147

8,767

3,829

7,017

Total operating expenses

220,382

235,314

225,161

202,578

203,904

Operating income

$64,801

$61,502

$99,431

$111,747

$99,870

Sales volumes per day

Natural gas (MMcf)

83.7

89.3

100.8

107.4

89.4

Crude oil (MBbls)

28.4

30.2

29.7

28.9

28.6

Total (MBOE)

42.3

45.1

46.6

46.8

43.5

Percent of sales volumes from crude oil

67%

67%

64%

62%

66%

Average sales price

Natural gas per Mcf

$4.98

$3.79

$3.51

$3.95

$3.37

Hedge gain (loss) per Mcf

(0.31)

0.42

0.30

0.23

0.29

Total natural gas per Mcf

$4.67

$4.21

$3.81

$4.18

$3.66

Crude oil per Bbl

$99.71

$94.85

$106.31

$102.82

$106.11

Hedge gain (loss) per Bbl

(1.83)

(0.50)

(0.63)

1.08

0.42

Total crude oil per Bbl

$97.88

$94.35

$105.68

$103.90

$106.53

Total hedge gain (loss) per BOE

$ (1.84)

$0.49

$0.24

$1.19

$0.87

Operating revenues per BOE

$74.85

$71.54

$75.78

$73.78

$77.58

Operating expenses per BOE

Lease operating expense

Insurance expense

1.68

1.91

1.98

1.75

1.91

Workover and maintenance

4.67

4.75

3.41

3.67

4.89

Direct lease operating expense

15.59

15.95

14.63

13.94

15.24

Total lease operating expense per BOE

21.94

22.61

20.02

19.36

22.04

Production taxes

0.29

0.29

0.33

0.35

0.35

Gathering and transportation

1.50

1.44

1.25

1.33

1.13

DD&A

26.22

24.95

23.40

22.73

22.66

General and administrative

6.35

4.27

5.53

2.89

4.11

Other – net

1.54

3.17

2.05

0.90

1.79

Total operating expenses per BOE

57.84

56.73

52.58

47.56

52.08

Operating income per BOE

$17.01

$14.81

$23.20

$26.22

$25.50

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements concerning the proposed transaction, its financial and business impact, management's beliefs and objectives with respect thereto, and management's current expectations for future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "intends," "likely," "will," "should," "to be," and any similar expressions or other words of similar meaning are intended to identify those assertions as forward-looking statements. It is uncertain whether the events anticipated will transpire, or if they do occur, what impact they will have on the results of operations and financial condition of Energy XXI, EPL or of the combined company. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to the ability of the parties to satisfy the conditions precedent and consummate the proposed transaction, the timing of consummation of the proposed transaction, the ability of the parties to secure regulatory approvals in a timely manner or on the terms desired or anticipated, the ability of Energy XXI to integrate the acquired operations, the ability to implement the anticipated business plans following closing and achieve anticipated benefits and savings, and the ability to realize opportunities for growth. Other important economic, political, regulatory, legal, technological, competitive and other uncertainties are identified in the documents filed with the SEC by Energy XXI and EPL from time to time, including their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements included in this press release are made only as of the date hereof. Neither Energy XXI nor EPL undertakes any obligation to update the forward-looking statements included in this press release to reflect subsequent events or circumstances.

About Energy XXI

Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Cantor Fitzgerald Europe is Energy XXI's listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com.

About EPL

Founded in 1998, EPL is an independent oil and natural gas exploration and production company headquartered in Houston, Texas with an office in New Orleans, Louisiana. The Company's operations are concentrated in the U.S. Gulf of Mexico shelf, focusing on the state and federal waters offshore Louisiana. For more information, please visit www.eplweb.com.

IMPORTANT ADDITIONAL INFORMATION FILED WITH THE SEC

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed merger and related transactions will be submitted to the stockholders of both Energy XXI and EPL for their consideration. Energy XXI filed with the SEC a registration statement on Form S-4 that constitutes a preliminary prospectus of Energy XXI that also includes a joint proxy statement for each of Energy XXI and EPL. The registration statement was declared effective by the SEC on April 17, 2014 andEnergy XXI and EPL have mailed the final joint proxy statement/prospectus to their respective equity holders. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. You may obtain a free copy of the final joint proxy statement/prospectus and other relevant documents filed by Energy XXI and EPL with the SEC at the SEC's website at www.sec.gov. You may also obtain these documents by contacting Energy XXI's Investor Relations department at (713) 351-3175 or via e-mail at IR@energyxxi.com or by contacting EPL's Investor Relations department at (713) 228-0711 or via email at tthom@eplweb.com

Competent Person Disclosure

The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Phil Kerig, Director of Corporate Development, is the qualified person who has reviewed and approved the technical information contained in this announcement.

GLOSSARY

Barrel – unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.

BOE – barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.

BOE/d – barrels of oil equivalent per day.

Bbl/d – barrels of oil per day

MMcf/d – million cubic feet of gas per day.

MD – total measured depth of a well.

Net Pay – cumulative hydrocarbon-bearing formations.

NRI, Net Revenue Interest – the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.

TD – target total depth of a well.

TVD –true vertical depth of a well.

WI, Working Interest – the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.

Workover / Recompletion – operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.

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